Increased personnel costs, in particular, reduced earnings last year. The Berlin-based fintech aims to break even before the end of 2023.
Higher costs are weighing on Solaris‘ earnings: the company announced Tuesday that the Berlin-based fintech posted a net loss of €56 million last year, an increase of about 33% compared to 2021.
“The year 2022 has put Solaris to a tough test,” the statement said. Increased personnel costs and costs to process Bafin orders were the main factors. During an audit in 2020, the financial supervisory authority identified deficiencies at Solaris, some of which were serious. As a result, it sent a special auditor to the bank and increased the capital requirements.
Bafin then tightened its control of the fintech at the beginning of January. Since then, the company has had to get the green light from Bafin before it can take on new customers.
“The main reason for the increased costs are investments to address regulatory deficiencies, such as consulting costs or additional personnel expenses in the double-digit millions,” a Solaris spokesperson said.